Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

End of Negative ECB Rates This Year Is Latest Bet for Traders

Published 02/04/2022, 02:49 AM
Updated 02/04/2022, 03:09 AM
© Reuters.  End of Negative ECB Rates This Year Is Latest Bet for Traders

(Bloomberg) -- Traders are accelerating bets on European Central Bank policy tightening, now seeing the key rate hitting zero by the end of this year. 

Money markets have priced in 50 basis points of tightening for December, which would be enough to end seven years of negative ECB deposit rates. The move builds on wagers from Thursday triggered by ECB President Christine Lagarde’s press conference, where she said policy makers are no longer ruling out an interest-rate hike this year.

It was a pivot that brings the ECB’s stance more in line with global peers at the Bank of England and Federal Reserve. Banks are also bringing forward their forecasts, with Bank of America. strategists predicting the deposit rate will hit 0% in December. 


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.